KUALA LUMPUR (Dec 30): Inter-Pacific Securities Sdn Bhd said the near-term outlook is still mildly positive as the calmer global market environment is helping to also shore up confidence in Malaysian equities.
In its daily bulletin today, the research house said that as a result, the FBM KLCI is likely to maintain its upward streak heading into the new year with the nibbling on previously beaten down sector leaders to also continue.
However, profit taking activities may also remain a feature following the recent gains that could still see the choppy trend staying and slowing the key index’s ascend as follow through buying is still weak due to the prevailing low participation rate.
“Therefore, the 1,550 level may become a formidable level to breach over the near-term as market conditions are approaching toppish territory.
“Above the 1,550 level, the next hurdle is at 1,561 points, while the supports are at 1,540 and 1,535 points respectively,” it said.
Inter-Pacific said nibbling on some of the lower liners and broader market shares are likely to continue and this should preserve their mild upsides over the near-term.
“Even with the improved market sentiments, however, fresh buying on these stocks are still anemic as most market players are still on their year-end break that could result in limited upsides,” it said.